The average speed of broadband is dropping, according to new research from broadband analysts broadband.co.uk

"Average download speeds UK wide peaked at 3.6Mbps in July 2008, since then the average has dropped every month and is now almost 10% lower at 3.3Mbps" Says Edd Dawson from broadband.co.uk.

The results came from thousands of broadband speed tests on the broadband.co.uk, taken by ordinary UK broadband users during October 2008.

"Not surprisingly we are seeing the biggest drops during the evening peak time slots where the average speed has now dropped below 3Mbps for the first time since March 2008. We suspect that the increased use of media streaming services such as BBC iPlayer are a significant factor in these results" added Dawson.

One in ten small firms can no longer afford to run their business, according to new research from RSA, experts in small business insurance.

The research revealed that the credit crunch has forced approximately 470, 000 small and medium sized businesses (SME’s) into a position where they can no longer afford to operate.

The research illustrates the difficulties for small businesses in coping with the economic climate, showing that 81% of employers have experienced rising costs from suppliers, 56% of which have had to pass these costs on to consumers.

High Street banks have been urged by Prime Minister Gordon Brown to accept the offer of £4 billion of EU money to make credit more easily available to small businesses.

Mr Brown and Chancellor Alistair Darling say the money, which would come from the European Investment Bank (EIB), could have a significant impact on struggling small businesses if it were to be passed on as loans.

Business groups called for assurances that small and medium sized businesses would receive their share of the money, as they have recently suffered at the hands of reduced credit and increased interest rates from lenders.

EIB officials warned that the money available to UK SMEs would depend entirely on how much of the cash UK banks applied for. A total of £24 billion is on offer over the next four years, and any EU state may apply for a share of the fund.

Research firm point topic has predicted that over four million homes and businesses will be using a fibre-based broadband connection by 2013.

Fibre-based broadband provided by cable networks is expected to account for 23% of the UK's domestic broadband market by 2013, whereas basic DSL copper lines are expected to see a drop in market share from 78% to 57% over the period.

Point Topic anticipates that most of the fibre connections will be fibre-to-the-cabinet (FTTC), with the final few hundred yards from the cabinet to the home connected via copper DSL lines. This would give the majority of users download speeds of 20 Mbps or more.

“This is probably the first moment when it has been possible to make a plausible forecast for fibre in the UK, based on some real plans and activity,” said Tim Johnson, chief analyst at Point Topic.

In the latest move to win the small business vote, The Tories have urged ministers to give SMEs a share of the £125 billion Government procurement project.

Tory leader David Cameron and shadow chancellor George Osborne called on Labour to allow SMEs access to the scheme, which currently they are locked out of.

The proposal follows the Daily Mail’s “fair deal for small firms” campaign last week, during which the Tory leader proposed a six month deferral on VAT tax for SME’s, as well as a 1p cut on payroll tax and a reduction of the small company corporation tax.

Mr Osborne stressed that as Whitehall is the biggest purchaser of supplies in the UK economy, SME’s should be able to benefit from the deal.

£125 billion worth of government contracts are available, but work is primarily dished out to large companies who can afford the officious tender process.